Airline Stocks Running Low On Fuel

Airline stocks have been on a tear the past couple years, many posting massive gains off the ’09 lows, despite all the negative coverage of them. Now that they are all up a huge amount, the news coming off the press is becoming more and more ‘bullish’ (funny how that works).

While the gains have been impressive off the lows, it is in the end, unsustainable for a long period of time. Today as I scan through the sector as a whole, I can’t help but notice the immense number of Airline stocks that are putting sloppy looking ‘topping out’ patterns. Pair these charts with the strength in Crude ($USO, see below), the set up is there for the airline stocks to begin running out of fuel.

Below are some charts of airline stocks that I find most appealing on the short side over the next couple of weeks. Check earnings dates. Click to enlarge images.